In constructing the short-run aggregate supply curve, we assume that the goal of business is to _____
Fill in the blank(s) with the appropriate word(s).
maximize profit.
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The larger the MPS, the smaller the value of the multiplier
Indicate whether the statement is true or false
Suppose a market were currently at equilibrium. A rightward shift of the demand curve would cause
A) an increase in price but a decrease in quantity. B) a decrease in price but an increase in quantity. C) an increase in both price and quantity. D) a decrease in both price and quantity.
A devastating earthquake destroys ten percent of the population in California. As a result: a. California's production possibility curve shifts outward
b. California moves up and to the left along its production possibilities curve. c. California moves down and to the right along its production possibilities curve. d. California's production possibility curve shifts inward.
A major tax revision occurred in the 1980s. Between 1981 and 1986, the top marginal tax rate for the federal personal income tax
a. decreased from 70 percent to 20 percent b. increased from 50 percent to 75 percent c. decreased from 70 percent to 31 percent d. increased from 31 percent to 50 percent e. decreased from 50 percent to 15 percent